Is your product a media item or a non-media item? If you’re selling on another Amazon platform, there are different FBA fees which you can find on their own website ( i.e.
Every two weeks, you’ll be given your sales profit with shipping and Amazon seller fees already taken out.įor the purposes of this article, I’m only giving you the FBA fees for the United States. The difference is that Amazon will remove your FBA fee directly from your sales and doesn’t require you to pay a separate bill.
Of course, you could always find another drop shipper or ship the products yourself, but outsourcing your shipping to Amazon is a great way to free you up to concentrate on other bigger tasks in your business.īut whether you use Amazon FBA or a drop shipper, there will be a fee involved. My recommendation for anyone just starting their Amazon business is to use Fulfillment by Amazon. Amazon Fees for Using Fulfillment by Amazon Typically, unless your price point is around $5 or $6, Amazon will be taking the referral percentage out of your sales price. Some categories only require a referral percentage regardless of the sale price ( i.e. However, the minimum referral fee isn’t applicable to all categories.
But if you sold a kitchen product for $3, you’d be charge a $1 minimum referral fee because the minimum referral fee is more than 15% of $3 ($0.45). So for example, if you sold a product in the kitchen category for $20, you would be charged a 15% referral fee ($3) because 15% of $20 is more than the $1 minimum referral fee. See this Seller Central page for up to date info. Here’s the Amazon chart, showing the various categories in which your product will be placed and the fees related to each: Each of these categories are handled differently by Amazon, taking either a referral fee percentage of the product’s sale price or a minimum referral fee ( whichever fee is more). Amazon Fees for Selling on AmazonĪmazon divides each of their products into 38 categories ( and one category entitled “Everything Else”). By the end of this article, you’ll be able to confidently determine your total profit margin by integrating all of Amazon’s fees. So in order to make sure you’re calculating your overhead correctly, we’re going to break down Amazon seller fees into easy steps. When you consider the traffic numbers on Amazon, that’s a fair deal.īut many sellers get confused when they try to sort through all of the content Amazon offers on seller fees. Because Amazon is allowing you to access their sales platform, they’ll be taking a cut from every unit that you sell. All that work for an 8% profit margin.Īnd one of the most important pieces of overhead costs is the Amazon seller fees. Many sellers who have rushed to get their product online have made quick calculations only to find out later that their product was making next to nothing.
This course is covered by Udemy's 30-Day Money-Back Guarantee, No Questions Asked.Anyone who is considering selling their own product on Amazon needs to know how to determine their gross profit margin.
Get all your questions promptly answered usually within 24 hours directly by the instructor. Rest assured that you are getting the most up-to-date information as the course is constantly being updated with all the latest changes and challenges posed by the current COVID-19 pandemic and interruptions in international logistics.Īll students are encouraged to ask questions in either the Q&A section or message me directly.
Finally, I explain how different shipping modes work and how to accurately estimate shipping costs + invoices of how much I have paid for my shipments from China to Amazon USA. Learn the best practices for crafting an optimized product listing. Watch me create an FBA shipping plan and generate FNSKU and Case labels for my product. I demonstrate how to create a new product listing on Amazon, including purchasing a UPC code. You can watch me source the best of best Alibaba suppliers, communicate with them, draft purchase contracts, and more. This course was designed in a case study format so it would be more engaging to learn and more effective in helping you source and ship your first product to an Amazon fulfillment center (FC).